July 28th, 2015
Daily Market Commentary
- Industrial Product Prices in Canada were reportedly up 0.5%, above estimates.
- Raw Material prices in Canada were flat in June, below an expected 1% increase.
- The Redbook index, which measures same-store sales growth in U.S. general merchandising companies, was reportedly up 0.1% and 1% in month-over-month and year-over-year terms, respectively.
- The S&P/Case-Shiller index of Home Prices for the U.S. was up 4.9% year-over-year, below estimates of 5.6%.
- GDP in the U.K. was up 0.7% and 2.6% in quarter-over-quarter and year-over-year terms, respectively. Both figures were in line with estimates.
- Oil extended declines in a bear market amid signs producers from the Middle East to the U.S. will continue adding supplies to a global glut.
- Copper rebounded from a six-year low as industrial metals gained after China, the biggest consumer of raw materials, said it will provide more support for equities.
- DuPont Co. cut its full-year profit forecast more than analysts expected amid lower crop prices that is causing farmers to spend less on its pesticides and seeds.
- TransAlta Corp. deliberately timed outages at power plants in Alberta at peak times in order to drive up electricity prices, the province’s utilities commission said in a ruling Monday.
- Despite a weak start to the year, Canada isn’t in a recession – yet. This conclusion was stated by C.D. Howe Institute’s Business Cycle Council, made up of 12 prominent economists, who stated that ‘data did not provide evidence that Canada had entered an economic downturn.” (Globe)
- WestJet Airlines Ltd. reported at 19% rise in quarterly profit, helped by lower fuel costs and addition of new routes. (Globe)
- Husky Energy reported a second-quarter profit of $120 million, down from a year ago, as it was hit by lower oil and natural gas prices and an increase in corporate taxes in Alberta. (Globe)
- U.S. stock-index futures rallied, signalling equities will rebound after posting their longest losing streak since January.
- General Motors Co. is investing $5 billion to expand its Chevrolet lineup to gain market share and boost profits in emerging markets including Brazil, China, India and Mexico.
- Honeywell International Inc. agreed to buy utility metering company Elster for 3.3 billion pounds ($5.1 billion), in one of the U.S. conglomerate’s biggest deals in recent years that helps broaden its line of business.
- European stocks rebounded from 2015’s worst five-day decline as deal activity increased and some corporate earnings beat estimates.
- U.K. economic growth accelerated in the second quarter as business services and finance strengthened and North Sea output surged.
- RSA Insurance Group Plc surged by the most in six years after Switzerland’s Zurich Insurance Group said it was considering making an offer, stirring speculation the British company could attract another suitor.
- BP Plc reported the lowest quarterly profit in at least 10 years after a boom in trading faded and the conflict in Libya forced almost $600 million of write-downs.
- General Electric Co. offered to sell gas-turbine assets to an Italian rival in an attempt to win European Union approval for its plan to buy most of Alstom SA’s energy business, four people familiar with the situation said.
- Orange SA reported sales and earnings exceeding analysts’ estimates as the French phone market recovered and revenue in Africa increased.
- Vodafone Group Plc plans to reduce as much as 22 percent of its workforce in Spain following the acquisition of Grupo Corporativo Ono SA last year.
- Chinese stocks fell in volatile trading, extending the biggest one-day loss since 2007, as concern grew unprecedented government intervention will fail to shore up equities.
- Mitsubishi Heavy Industries Ltd. said the operator of the San Onofre nuclear plant is claiming $7.57 billion in damages related to the shutdown of the Californian facility.
*All information is taken from Bloomberg, unless otherwise noted.